Casella Waste Systems announces a $25 million bond offering for financing capital projects in Vermont.
Quiver AI Summary
Casella Waste Systems, Inc. announced the offering of up to $25 million in Solid Waste Disposal Revenue Bonds under the Vermont Economic Development Authority. This offering is part of a larger pool from an initial $35 million loaned to the company in June 2022, with the new bonds allowing access to remaining funds before a deadline of June 1, 2025. The bonds will be backed by a guaranty from Casella’s subsidiaries and will be used to finance capital projects in Vermont. They will only be offered to qualified institutional buyers and are not considered a general obligation of the issuer or the state. The offering is subject to market conditions and regulatory approvals, and there are risks that may impact the completion of this offering. Forward-looking statements regarding the bond offering and its use are subject to uncertainties, and Casella does not guarantee that they will be realized.
Potential Positives
- Casella is seeking to raise up to $25.0 million through the issuance of Solid Waste Disposal Revenue Bonds, which will provide additional capital for its projects.
- The proceeds from the bond offering are intended for financing and reimbursement of costs for capital projects in the State of Vermont, indicating growth and investment in the region.
- The bonds are guaranteed by all or substantially all of Casella’s subsidiaries, showcasing the company's financial commitment and structure.
Potential Negatives
- The offering of the Bonds is conditional on market conditions and other factors, introducing uncertainty about the company's ability to secure the necessary funding.
- There is no assurance that all approvals for the Bonds will be received, or that all conditions for issuance will be satisfied, which raises concerns about the potential delay or failure of funding.
- The Bonds are not backed by a general obligation of the Issuer or the State of Vermont, limiting the security of the investment and potentially increasing perceived risk among investors.
FAQ
What is the purpose of the Vermont Economic Development Authority solid waste bonds?
The bonds are intended to finance and reimburse Casella for certain capital project costs in Vermont.
How much will Casella Waste Systems raise through the bond offering?
Casella Waste Systems aims to raise up to $25.0 million through the bond offering.
Who can purchase the Casella Waste Systems bonds?
The bonds are being offered only to qualified institutional buyers as defined by Rule 144A.
What are the risks associated with the bond offering?
Risks include market conditions, regulatory approvals, and uncertainties detailed in Casella's SEC filings.
When will the bond offering be completed?
The exact timing of the offering will depend on market conditions and is not guaranteed.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CWST Insider Trading Activity
$CWST insiders have traded $CWST stock on the open market 17 times in the past 6 months. Of those trades, 0 have been purchases and 17 have been sales.
Here’s a breakdown of recent trading of $CWST stock by insiders over the last 6 months:
- JOHN W CASELLA (CHIEF EXECUTIVE OFFICER) has made 0 purchases and 5 sales selling 51,449 shares for an estimated $5,343,098.
- DOUGLAS R CASELLA (VICE CHAIRMAN, BD OF DIRECTORS) sold 20,000 shares for an estimated $2,245,200
- EDMOND COLETTA (PRESIDENT) has made 0 purchases and 2 sales selling 20,000 shares for an estimated $2,002,166.
- WILLIAM P HULLIGAN has made 0 purchases and 2 sales selling 10,000 shares for an estimated $998,180.
- EMILY NAGLE GREEN has made 0 purchases and 2 sales selling 2,770 shares for an estimated $297,389.
- MICHAEL K BURKE sold 1,800 shares for an estimated $203,184
- PAUL LIGON (SR VP of Sustainable Growth) sold 1,730 shares for an estimated $184,781
- SEAN STEVES (Sr VP & COO of SW Ops) sold 1,418 shares for an estimated $153,526
- KEVIN DROHAN (VP & CHIEF ACCOUNTING OFFICER) sold 214 shares for an estimated $22,559
- BRADFORD JOHN HELGESON (Executive VP and CFO) sold 197 shares for an estimated $21,015
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CWST Hedge Fund Activity
We have seen 157 institutional investors add shares of $CWST stock to their portfolio, and 168 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- WASATCH ADVISORS LP added 838,086 shares (+48.2%) to their portfolio in Q4 2024, for an estimated $88,677,879
- WESTFIELD CAPITAL MANAGEMENT CO LP added 569,819 shares (+60.0%) to their portfolio in Q4 2024, for an estimated $60,292,548
- GHISALLO CAPITAL MANAGEMENT LLC removed 275,000 shares (-91.7%) from their portfolio in Q4 2024, for an estimated $29,097,750
- PRICE T ROWE ASSOCIATES INC /MD/ removed 267,990 shares (-35.7%) from their portfolio in Q4 2024, for an estimated $28,356,021
- VOYA INVESTMENT MANAGEMENT LLC added 260,689 shares (+1368.2%) to their portfolio in Q4 2024, for an estimated $27,583,503
- FRED ALGER MANAGEMENT, LLC removed 255,149 shares (-23.9%) from their portfolio in Q4 2024, for an estimated $26,997,315
- SG CAPITAL MANAGEMENT LLC added 254,297 shares (+inf%) to their portfolio in Q4 2024, for an estimated $26,907,165
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
RUTLAND, Vt., Feb. 28, 2025 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (“
Casella
”) (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today announced an offering of up to $25.0 million aggregate principal amount of Vermont Economic Development Authority (the “
Issuer
”) Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022A-2 (the “
Bonds
”) under an indenture between the Issuer and the bond trustee, dated as of June 1, 2022 (the “
Indenture
”). The Bonds represent the drawdown (which would no longer be available to the Company if not occurring by June 1, 2025) of the remainder of the Vermont Economic Development Authority Solid Waste Disposal Revenue Bonds (Casella Waste Systems, Inc. Project) Series 2022, the initial proceeds of which, in the amount of $35.0 million, were loaned to the Company in June 2022. The Bonds will be guaranteed under a guaranty (the “
Guaranty
”) by all or substantially all of Casella’s subsidiaries (the “
Guarantors
”), as required by the terms of the loan agreement, dated as of June 1, 2022, between the Issuer and Casella (the “
Loan Agreement
”), pursuant to which the Issuer will loan the proceeds of the Bonds to Casella. Casella intends to use the net proceeds of the Bonds to finance and/or reimburse Casella for certain costs of certain capital projects in the State of Vermont.
The exact terms and timing of the offering of the Bonds will depend upon market conditions and other factors. There can be no assurance that all approvals with respect to the Bonds will be received, that all other conditions to the issuance of the Bonds will be satisfied or that the offering will be completed.
The Bonds will not be a general obligation of the Issuer and will not constitute indebtedness of or a charge against the general credit of the Issuer. The Bonds will not be a debt of the State of Vermont or any political subdivision of the State of Vermont, and will be payable solely from any remarketing proceeds and from amounts received from Casella under the terms of the Loan Agreement and from the Guarantors under the Guaranty.
The Bonds will be offered only to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended (the “
Securities Act
”).
The Bonds have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Bonds, nor shall there be any sale of the Bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
Safe Harbor Statement
Certain matters discussed in this press release, including, among others, the statements regarding the offering of the Bonds and Casella’s expectations regarding the use of proceeds of the Bonds, are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as “believe,” “expect,” “anticipate,” “plan,” “may,” “will,” “would,” “intend,” “estimate,” “guidance” and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which Casella operates and management’s beliefs and assumptions. Casella cannot guarantee that the offering of the Bonds will be completed, that the Bond proceeds will be available or applied as expected or that it actually will achieve the plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in Casella’s forward-looking statements. Such risks and uncertainties include or relate to, among other things: market conditions and Casella’s ability to consummate the offering of the Bonds, the receipt of all necessary consents and the satisfaction of all other closing conditions with respect to the offering of the Bonds, as well as additional risks and uncertainties detailed in Item 1A, “Risk Factors” in Casella’s Form 10-K for the fiscal year ended December 31, 2024 and in other filings that Casella periodically makes with the Securities and Exchange Commission. There can be no assurance that Casella will be able to complete the offering of the Bonds on the anticipated terms, or at all. Casella undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Investors:
Jason Mead
Senior Vice President of Finance & Treasurer
(802) 772-2293
Media:
Jeff Weld
Vice President of Communications
(802) 772-2234
http://www.casella.com
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